Pentagon Capital Management - market-timing

A forum user alerted us to this story from the Telegraph on Pentagon Capital Management, a fund run by Lewis Chester.

According to the article, Pentagon is closing up shop now to avoid their creditors do it for them:

Sources said Pentagon had told investors it had decided to close its operations because the fund believes that, on hearing news the SEC had filed a civil complaint, lenders and other counterparties will become nervous about backing the fund and force it to sell assets into a falling market.

The aforementioned complaint is in the amount of a $200 mm civil complaint filed by the SEC.

At this time, we have not been able to attain the letter sent by Pentagon to investors. If you have it, please let us know

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Important: This fund is on our list of hedge funds that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective. The "imploded" list contains hedge funds (or other unregulated and autonomous speculative investment funds) which have gone through some sort of permanent adverse change. This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid mark-downs in net asset value; or abnormal "bail-out" by corporate parents or peers in order to avoid write-downs and provide liquidity. The funds are of any type and sector.